Governor Hochul says tariffs act as a 21% tax, costing NY families $4,200 annually

New York (WRGB) — Governor Hochul today announced the findings of the New York State Tariff Disruptions Report, a comprehensive statewide analysis outlining the harmful economic effects of the Trump Administration’s federal tariff policies.

According to a release, tariffs are functioning as a 21% tax on imported goods, costing the average New York family an estimated $4,200 annually. The analysis also shows that inflation is 52% higher than the 10-year average, with rising costs across multiple sectors — threatening to undo years of economic growth and job creation in New York State.

Governor Hochul said,

New Yorkers are seeing firsthand what these tariffs really are — a tax on hardworking families and employers. Under my leadership, the State’s economy was growing in all areas. We achieved record tourism numbers, a private sector job growth rate that outpaces the nation, and unprecedented commitments from businesses to grow jobs. Tariffs are threatening to undermine all of this. They raise prices on everything from milk and medicine to steel and housing materials, while doing nothing to strengthen our economy. Tariffs are destabilizing markets, straining small businesses, and punishing the very people who keep our state moving.

According to the release, the report— commissioned through a July 14, 2025 directive from the Governor’s Office of State Operations — required Empire State Development (ESD) and the Office of General Services (OGS) to lead a cross-agency assessment of the tariffs’ economic and social impacts. The investigation examined how increased costs, supply chain disruptions, and reduced investments are affecting New York’s economy.

Preliminary Findings:Agriculture: Farmers are facing up to $20,000 in additional annual costs, while milk exports have dropped 7 percent statewide.Construction: Material prices have risen 15–25 percent, adding about $11,000 to the cost of each new single-family home.Tourism: Canadian visitation fell by nearly 400,000 in May 2025 compared to May 2024, hurting a sector that employs one in ten New Yorkers.Health Care: Tariffs on imported medical equipment and pharmaceuticals have increased premiums for state employee health plans by $14.5 million.Manufacturing: Input costs are up 20 percent, shrinking profit margins and delaying investments for hundreds of manufacturers across New York.

In April, Governor Hochul joined a multi-state lawsuit against the Trump Administration, challenging the legality of the tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The case was argued before the U.S. Supreme Court on November 5.

Empire State Development President and CEO Hope Knight said,

Tariffs are slowing investment, raising costs, and threatening industries that drive New York’s economy. Under Governor Hochul’s leadership, we’ve made historic progress creating jobs and attracting business growth — and we will keep fighting to protect that momentum for New Yorkers.

OGS Commissioner Jeanette Moy added,

At Governor Hochul’s direction, OGS and ESD collaborated on a statewide assessment of the socioeconomic impacts of Washington’s tariffs on state industries, from agriculture to construction. With the uncertainty and instability that federal tariffs bring to our state’s economy, I encourage all stakeholders to use the New York State Tariff Disruptions Report to gain a better understanding of how federal tariffs are negatively affecting New Yorkers and the state’s economic prosperity.

State Senator Sean Ryan called the report a wake-up call.

Ryan said,

Donald Trump’s tariffs are a hidden tax on working families and small businesses. His misguided trade war with a close ally has driven up prices, cost jobs, and hurt communities like Western New York that depend on trade and tourism with Canada. I commend Governor Hochul for leading this statewide analysis, which puts hard numbers behind what we’ve been warning all along: these reckless policies are hurting New Yorkers. It’s time for the federal government to reverse course and focus on lowering costs and restoring stability for American workers.

The New York State Tariff Disruptions Report is available online.